Experts Censure Capital Gain Tax Under High Inflation

Economic experts believe that as the prices of houses, cars, or other assets rise only in line with inflation, there is no real increase in wealth. 
“Under inflationary conditions, taxation on capital gains is contrary to the principle of fairness,” they say. 
Last week, Iranian lawmakers approved the outlines of capital gains tax that will be levied on profit emanating from the sale of precious metals namely gold, gold ingot, and platinum, foreign currency, real-estate and cars.  
“Generally speaking, levying tax on capital gains has a positive relationship with optimal investment. It discourages and reduces investment in unproductive assets and directs part of resources into productive economic sectors,” Ali Sa’dvandi, a macroeconomic policy advisor and finance professional, told the Persian daily Iran.